Reading a rental application without guessing

Choosing a tenant is where self-managing landlords most often swap method for instinct. Instinct here is unreliable, and in several directions unlawful. The method is short: three checks, the same questions for every applicant, and a note of why you chose the one you chose.

One: are they who they say they are?

Photo identification, matched to the name on the application and to the name that will go on the agreement. It is procedural, and it is easy to skip in a hurry, usually for the applicant who is most charming in person.

Two: is the rent affordable on their real income?

Ask for evidence of income rather than a figure: recent payslips, a bank statement showing the deposits, or an accountant’s letter for somebody self-employed. The question is whether this rent, on this income, will last the term.

The usual rule of thumb, rent at around thirty per cent of gross income, is a starting point rather than a gate. Circumstances vary widely, and a rigid ratio excludes good tenants while letting some poor ones through.

Three: would their last landlord take them back?

This is the most useful question you can ask anyone, because it is hard to answer evasively. Call the previous landlord or agent rather than the current one, who may want a smooth departure, and ask a few specific things.

• Was the rent paid on time, and was it ever behind?
• Was the property returned in reasonable condition?
• Were there complaints from neighbours or other residents?
• Would you rent to them again?

Listen to how the last question is answered as well as to the answer. A referee who hesitates before it has told you something.

What you must not ask

Federal and state discrimination law prohibits refusing a tenancy on grounds including race, sex, pregnancy, marital or relationship status, disability, age and sexuality. Each state adds attributes of its own, and some now limit what a rental application may ask for and how long it may be kept, so read the rules that apply where your property is.

Write down why, then let the rest go

Record the reason you chose the applicant you chose, in one line, at the time. It disciplines your own thinking, and if a rejected applicant complains, a note made then about verified income and a good reference is worth more than a recollection assembled later.

Then deal with the applications you did not accept. They hold identity documents, income evidence and contact details for people who now have no relationship with you. Privacy law, and simple decency, say you should not still be holding that material a year later because deleting it was a chore.